“Wholly owned subsidiary, the firm owns 100 percent of the stock. Establishing a wholly owned subsidiary in a foreign market can be done two ways. The firm either can set up a new operation in that country or acquire an established firm in that host nation and use that firm to promote its products”. The advantages are the location and experience curve economies can be realized; the subsidiary can be shared 100 percent and the control on the operation also will not lose its technologies to others. The disadvantages is that it the most costly and risky method.